Soaring competition
Regional retailers focused on active expansion across Asia-Pacific in the past year and were largely accountable for a 13% increase in store numbers. Conversely, global retailers’ expansion into the region has slowed due to the economic and competitive pressures they’re facing in their home markets.
As a result of the increase in store numbers, competition has invariably heightened, and in a number of Asian markets, the top five grocery retail chains account for 80% or more of modern trade sales. Merger and acquisition activity will increase in many Asia-Pacific countries in the year ahead as retailers strive to gain the necessary scale to dominate markets and leverage their size when purchasing, says Nielsen.